11/7/17 – Despite company’s claims, bailout for Texas-based Dynegy would raise bills for downstate Illinois consumers

For Immediate Release:
November 7, 2017

Contact:
Billy Weinberg
IL Clean Jobs Coalition
(312) 485-4363

Central & Southern Illinois customers would fork over $400 million more per year to subsidize Texas-based energy giant soon to be sitting on $5.5 billion

During a hearing held today in Springfield, representatives of Texas-based Dynegy tried to compel lawmakers to approve a bailout deal on the backs of Illinois consumers by claiming that failure to pass the bill would mean rate hikes— despite the fact that the legislation itself would raise the typical residential consumer’s electric bills by as much as $115 per year.

“The last thing that the Illinois General Assembly should do is to give a Texas-based energy giant, soon to be worth $20 billion, the chance to raise rates on Central and Southern Illinois households and consumers by a single dime, let alone by hundreds of millions of dollars per year,” said the Illinois Clean Jobs Coalition.

According to an analysis by the Environmental Defense Fund, the legislation would force customers in the Ameren service territory to pay an extra $400 million per year. Similarly, Crain’s Chicago Business calculated that it could cost the average Central and Southern Illinois household $115 per year to subsidize the out-of-state corporation.1

Last week it was announced that Dynegy would merge with fellow Texas-based energy company Vistra Energy. According to reports, the new firm will have an estimated enterprise value of $20 billion, with a reported $5.5 billion in excess capital.2

“Illinois consumers struggling to pay their bills shouldn’t have to shell out more of their hard-earned cash to pad the profits of a company sitting on $5.5 billion,” the Illinois Clean Jobs Coalition added.

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(1) More power bailout talk in Springfield – Crain’s Chicago Business, 10/13/17

(2) Dynegy Agrees To Be Bought By Vistra Energy In All-stock Deal – Quick Facts
October 30, 2017, 07:09:00 AM EDT By RTT News